It all comes out in the Wash: OTTO is the Online Market Leader for 'White Goods'

Every second washing machine ordered online comes from OTTO. However, the segment of "white goods" encompasses much more. In trade terminology, the term specifically refers to large appliances ("Major Domestic Appliances" - MDA) intended for use in private households. This includes washing machines, dryers, dishwashers, as well as refrigeration and freezing devices. The term "white goods" derives from the traditional color of the enamel coating of these appliances. In contrast, the term "brown goods" generally refers to consumer electronics.

50 percent market share, 100 percent service orientation
OTTO holds a market share of 49.9 percent in the pure online business for white goods in Germany. This is a remarkable figure, largely attributed to its strong service promise: "Everything went perfectly from the desired delivery date to the disposal of the old washing machine and the connection of the new one. Thanks to the friendly Hermes drivers and OTTO," writes customer Birte N. from Bargteheide near Hamburg in her review. Attractive financing options, packaging disposal, and extended warranties further enhance OTTO's growing portfolio of related services.

Private label as a quality driver
A significant part of the success of white goods at OTTO comes from its private label, Hanseatic. For over 30 years, it has offered a wide range of products from televisions and refrigerators to small kitchen appliances. "We have strategically positioned Hanseatic by operating below the German A-brands and offering better features and energy efficiency at the same price point. This has proven to be very successful and allows us to keep the brand exclusive and attractive," explains Axel Seemann, Division Manager Home Appliances at OTTO.

And the concept is working: In the last two years alone, sales of Hanseatic products have increased by 31 percent. Additionally, Hanseatic is the market leader in Germany for side-by-side refrigerators.

Hanseatic continues to grow
The current business year also shows signs of growth. What drives this success? "Hanseatic is currently our fastest-growing brand. Over the years, it has established itself through a high standard of quality and strong customer loyalty, which is crucial for the brand's longevity. The products are characterized by reliability and an excellent price-performance ratio, leading to a lower return rate compared to other well-known brands. This quality ensures that customers keep coming back to Hanseatic," explains hardware expert Seemann.